Consumer Purchase Behaviour in a Frequently bought product Category: Investigation and measure of Brand loyalty.

Abstract

Past research has predominantly relied on models without incorporating heterogeneity as part of their methodological tools. This research investigates different ways of modeling brand loyalty using a competing risk model that incorporate brand loyalty and study its time dependence.

We introduce previous models by including switch-specific hazard functions, repeat purchases, marketing mix Variables, unobserved heterogeneity and mover- stage type loyalty. An empirical example based on household purchases of disposable products is provided to illustrate the modeling approach.

Results indicate that ignoring heterogeneity will lead to biased inferences concerning time dependence of brand loyalty.

Keywords: Heterogeneity, Mover-Stayer loyalty, Hazard function, and Marketing mix